Transcript Marketing
Marketing (It is about understanding how people make buying decisions and using this information in the design, building, and selling of products) What is market? Importance of marketing Functions of marketing departments What is market? • A market is a collection of people who refer to each other about their buying decisions. • For many purchases we depend on advertising or word of mouth recommendations by friends. For major appliances , we may consult references like Consumer Reports. Aspects of marketing • There are two aspects of marketing • First, Identification of customer needs, product opportunities, and an understanding of market segments. • Acquiring this information is often called market research. • Second, Introduction of the product into marketplace and the development of an ongoing relationship with the customer. Functions of marketing department • It creates and manages customer relationship • Translates customer needs to product requirements • Influences the creation of services that support the product and customer • Assisting with the introduction of the product into the marketplace by performing customer test, field trials of the product, planning for test marketing in restricted regions, advising on product packaging and warning labels, preparing user instruction manuals and documentation, arranging for user instruction, and advising on advertising. • Marketing department does not make sales; that is the responsibility of the sales department. Marketing department performs specific tasks • Preliminary marketing assessment • Quick scopoing of the potential sales, competition, and market share • Detail market study through interviews with individuals and focus group Market Research provides the following information • • • • • Define the market segments Identify the early adopters Identify competitive products Establish the market size ($) Determine the breath of the product line and number of versions • Determine the product price-volume relationship • Establish the customer needs and wants Classification of Products Based on Market • Market Pull & Technology Push • Market Pull is a situation where a product is developed based on a response to an identified market need • In Technology Push company starts with a new proprietary technology that looks for a market in which to apply this technology. Types of Products • Platform Product: is built around a preexisting technological subsystem. Examples include Apple Macintosh operating system. This technology did not exist before but it was technologically feasible. • Customized Products: are those in which variations in configuration and content are created in response to a specific order of a customer. In a highly competitive marketplace, customization is one of the major trends, so much so that futurists predict that we are moving to a world of mass customization. Organizational Chart for a manufacturing company A Functional Organization (an example in next slide) All research and engineering report to a single vice president All manufacturing activity is the responsibility of another vice president A chief characteristic of a functional organization is that each individual has only one boss A simplified Project Organization President Vice-president of research and engineering Manager, Project X Manager, Project Y Manager, Project Z Engineering Engineering Engineering Engineering Support Engineering Support Engineering Support Matrix Organization: in this system each person has two supervisors, one a functional manager and the other a project manager. Concurrent Engineering Concurrent engineering has three main elements: Cross-functional teams: managers must empower cross-functional teams for this to work Parallel design : Also called simultaneous engineering, refers to each functional area implementing their aspect of the design at the earliest possible time, roughly in parallel. Vendor partnering: Technical experties of the vendor for certain components is employed as an integral member of the cross-functional design team